Gold Price Forecast: XAU/USD target range for 2023 set at $1,900 to $2,000 – Wells Fargo

While the commodity bull super-cycle has us positive on Commodities generally, strategists at Wells Fargo are neutral on the Precious Metals sector, which includes Gold. 

Gold under pressure

“Gold has positives, but its negatives have been directing prices for some time now. The Dollar's 2022 ascent to a 20-year high was Gold's most potent negative, but the 2023 flattening and then reversal lower in the Dollar's value that we expect should relieve some pressure on Gold.” 

“Other positives that may help in 2023 are a favorable supply/demand balance and oversold price conditions (cheap versus other commodities and negative investor sentiment).” 

“Our 2023 target range of $1,900 to $2,000 reflects in-line commodity performance plus a bit extra, while Gold appears oversold. We caution investors, though, not to be too aggressive with Gold until it shows better price action.”